Everything is coming up champagne and roses for home sellers in 2018 as experts predict more home sales and rising home prices as Millennials appear to finally be buying.
For the new year, the real estate scene looks great for both sellers and buyers.
Buyers will benefit from low mortgage rates, ticking just past 3.9 to 4 percent in mid-November 2017 for a 30-year fixed rate mortgage.
Analysts do not expect those rates to rise much, if at all.
In many areas, the number of houses for sale is low and that drives prices up. On the other hand, prices are not as high as in the recession-era market. Experts say that should give buyers some confidence.
The construction industry appears to be addressing the problem of a low supply of homes for sale as new construction rose in mid-November 2017, according to the U.S. Census Bureau.
The overall economy also forecasts a healthy housing market, as more people are working and tax cuts may add money to the economy.
Millennials are buying
Millennials, who have married later than other generations, appear to be settling down and buying homes according to the Wall Street Journal. The Census Bureau in November reported that ownership increased to 63.9 percent in the third quarter of 2017, the highest level since 2014.
Sellers should take note that Millennials make up 66 percent of all first-time home buyers and 34 percent of buyers overall, according to Inc.
This generation is tech savvy and they shop the internet for everything from clothes to houses. That means good photos and online listings are essential to their buying power.
Millennials are more interested in home office space than previous generations as working from home is becoming more acceptable to employers. Today more than 3 million Americans work from home.
Cell reception is essential for this home buyer whose use of smart technology represents 43 percent of the smart market.
Millennials don’t want to commute and they say convenience to their workplace is important in choosing a neighborhood. According to Inc, they also want to be near cities but not in them.